VSAT: Present and Future

Transcription

1 STARK MOORE MACMILLAN S m VSAT: Present and Future A comprehensive survey of maritime VSAT Research Report in association with

2 INTRODUCTION VSAT: BACKGROUND Communicating with vessels at sea is a necessity, but it is difficult and expensive. The first satellite communications networks were conceived with one primary consideration improving the safety of seafarers and their vessels. As technology has advanced and the requirements for sending data between ship and shore have increased, the pay-per-megabyte nature of L-band demand assigned services has struggled to keep pace. Traditionally, L-Band services have been the dominant communications technology used on-board a maritime vessel, but extensive use of these services can become very expensive as they are charged on a per-megabyte tariff. Whilst VSAT satellite services were always an option for some, the high cost of the Single Channel Per Carrier (SCPC) technology they used (requiring dedicated bandwidth for each vessel), made VSAT far more expensive than L-Band and prohibitively expensive for most. With the advent of Time Division Multiple Access (TDMA) VSAT networks, the landscape of maritime communications changed fundamentally. Offering a comparable service to SCPC networks but sharing and segmenting bandwidth across vessels, suddenly high speed, always-on, flat-rate VSAT connectivity came within reach of everyone within the maritime community. In the past five years TDMA networks in the maritime VSAT market have increased from less than 20% to more than 50% i. VSAT operators have provided valuable services to ship owners and operators by delivering always-on, flat-rate, IP connectivity. This has enabled vessels to become highly functional remote offices integrated with corporate network applications. Taking advantage of standard applications has improved vessel management and extends the communications infrastructure to personnel on board, allowing crews to train and remain in contact with home. VSAT has quickly become one of the hottest topics in maritime communications. It has moved out of niche sectors such as Energy Oil & Gas, Survey and Cruise into more mainstream commercial maritime, previously the preserve of Inmarsat and Iridium. With an estimated market size of 40,000 vessels of 1,000GT and over, this market has seen an influx of VSAT solution providers. There has been continuing debate about the complexity of VSAT systems, the drivers to fitting, the costs and the real numbers of ship owners and operators who are actively considering fitting a VSAT system. Despite the increasing profile of VSAT solutions there has never been a major qualitative survey of the maritime market s attitudes towards, and usage of, VSAT systems. IDIRECT & THE VSAT SURVEY idirect s TDMA VSAT networks are the most broadly deployed in the maritime community with 47% of all VSAT enabled vessels having an idirect router installed onboard. idirect networks and services are built and sold exclusively through a diverse global network of satellite operators, VSAT network operators and carriers, resellers and integrators. In the maritime industry twelve of the top fifteen maritime communications providers use idirect technology as part of their solution. idirect enables them to build advanced networks that deliver strategic business value to their end users and meet the specific challenges of the maritime environment and the complex needs of ship owners and operators. The increased demand for VSAT technology and the proliferation of new suppliers has meant a steep learning curve for those in the maritime market keen to take advantage of the new opportunities offered by flat-rate, always-on, high speed, IP connections. In an environment where choosing a communications network is a major investment, ship operators have a panoply of competing requirements, and access to information, education and training is key to understanding whether VSAT is the right choice. In the fourth quarter of 2010 idirect set out to undertake the largest and most comprehensive survey of perceptions and usage of VSAT in the maritime industry. The object of the research has been to provide a comprehensive picture of the current VSAT fittings, the drivers and barriers to the expansion of VSAT into the market, how ship operators who have not yet fitted VSAT view VSAT, and how those already using it believe it has met or altered their expectations. idirect commissioned specialist maritime marketing consultancy Stark Moore Macmillan to develop and undertake the in-depth telephone survey. To ensure the highest quality data all interviews were conducted by specialist maritime personnel and the results interpreted by experts in maritime marketing and business. idirect is pleased to share an abridged version of the full survey report with the maritime industry. 1

3 VSAT: PRESENT & FUTURE The VSAT: Present & Future survey is the most extensive survey about VSAT in the commercial maritime market. It measured both quantitatively and qualitatively: Knowledge & understanding of VSAT systems and networks within the shipping community Maritime VSAT market and its potential both from existing and potential VSAT user perspectives Drivers and barriers to evaluating/fitting VSAT Comparative expenditure of VSAT versus other communications systems VSAT purchasing behaviour and decision making within ship operators T HE SAMPLE In-depth telephone interviews were undertaken with 60 shipowner/operator companies with fleets of 10 vessels and over, respondents comprised: IT Managers Fleet & Technical Managers CIOs & CTOs The survey consisted of 20 questions to test the knowledge, perception and understanding of VSAT, and was split across existing VSAT customers and potential VSAT adopters. Existing VSAT customers consisted principally of Tier 1 operators, those early adopters of technology with larger fleets (over 50% with 60+ vessels) or operators within specialist sectors such as seismic survey and the energy supply market. Respondents with VSAT systems within their fleet controlled approximately 2,900 vessels of which 24% were fitted with VSAT. Companies not using VSAT accounted for just over 2,500 vessels or 8% of the available market yet to fit VSAT. Although there was a wider and more even spread of size of operator in this group the largest group (30%+) operated 60 or more vessels. This group also contained a small number of specialist operators in the dedicated heavy lift and project cargo sectors. The survey covered a wide variety of vessel types. Potential users typically operated mixed fleets predominantly in the Tanker, Bulk Carrier and Container sectors. Existing users had a wider spread of vessel types but over 50% were in the Tanker market. This highlights the use of VSAT in specialist sectors but further demonstrates the value VSAT has across a wide range of market segments. The combination of this with a declining price point means we are witnessing a greater number of Tier 2 operators entering the market. Tanker operators are using VSAT because of the benefits it can provide in vessel operations and safety management. Respondent companies represented a worldwide geographic spread with the majority having vessels that traded globally. In total these companies represented vessels that comprise over 13% of the world s commercial trading fleet of 1,000GT and over. 60% 50% 40% 30% 20% 10% 0% Non VSAT Companies Existing VSAT Companies 2

4 KNOWLEDGE & UNDERSTANDING OF VSAT Across a variety of questions respondents awareness of VSAT was higher than expected demonstrating that VSAT providers have done a good job of getting their message across. At 94% respondents overwhelmingly understood that VSAT offers fixed monthly costs and is not charged on a per-megabyte tariff like traditional L-band services. 81% believed that VSAT provided fixed monthly communication costs and that they could simplify their budgetary procedures by using a VSAT solution. However, 57% of respondents did not believe that VSAT would save the company money compared with their existing satellite communications solution. The benefits of access to more applications, crew welfare or operational efficiency gains were not taken into account or even quantified. 79% believed that VSAT facilitates access to more applications demonstrating that both user groups were aware that real time or data intensive applications were not feasible via a pay-per-megabyte solution. However, the majority of respondents were unsure whether VSAT offered higher bandwidth. This uncertainty stems from the lower speed service offerings of VSAT operators attempting to provide services at a price point attractive to ship operators. These services may be always-on but potential users don t consider these low price options to offer broadband speeds. Such services have probably led to confusion or lack of understanding about the high speed capabilities of VSAT. Additionally, many ship operators believed that the Committed Information Rate (CIR) offered on VSAT services was the only speed that could be regularly achieved. Although unlikely to use such services, potential users unfairly compared noncontended services like Inmarsat s streaming IP to VSAT services. A large number of VSAT providers sourcing airtime from multiple space segment providers and equipment component manufacturers left respondents unsure whether the VSAT industry provided an approved supplier network for customers. This is in contrast to the Inmarsat/Iridium environment more familiar to ship operators where the norm is a single network operator, limited service providers and equipment manufacturers. Uncertainty in the main stems from a lack of understanding of whether approval should come from the space segment provider or the network operator or both, and where information on approved suppliers can be found. It has been a long held belief within the industry that one of the main barriers to wider adoption of maritime VSAT is that the solution is too complex and poorly understood by potential adopters. However, complexity is not the barrier it is perceived to be, only 7% of all potential users indicated that complexity was a reason not to fit. 16% believed that VSAT could also offer enhanced safety benefits by providing an additional communication channel and the option to have real time images relayed ashore in the event of an accident or emergency onboard. Publicity, and an increase in VSAT operator numbers, has amplified awareness of VSAT technology to the point where ship operators are now familiar with the concept of an always-on connection, flat rate billing and access to a greater range of applications. However, they do not yet fully understand the implications that this technology has for their business and the way in which they operate their vessels. This will undoubtedly improve as the market matures, but currently presents some challenges to the adoption of VSAT. MARITIME VSAT MARKET & ITS POTENTIAL E XISTING VSAT USERS Fleets surveyed which already operated VSAT solutions had a penetration level of 24% within the fleet as a whole approximately 1 in every 4 vessels. The survey did not set out to interview operators in sectors where VSAT was known to be fitted in large numbers, instead concentrating on companies that were more representative of the commercial shipping market as a whole. Therefore, this penetration level of 24% is more representative of what would be expected to be seen in mixed fleets, and mixed fleets within Tier 2 operators. Of those companies with more than 75% of their fleet fitted, nearly half (45%) had taken the decision to, or were in the process of, equipping the entire fleet with VSAT. For these respondents and their companies VSAT was clearly an indispensible communications tool, had been in operation for many years and, was expected by crew and charterers alike. Respondents from fleets where there were lower levels of deployment found VSAT to be equally indispensible on the vessels where it was appropriate to fit, but did not believe that this extended to all vessels in their fleet. 3

5 These operators typically consisted of mixed fleets with tramp vessels, and those with insufficient data requirements. What Percentage of Fleet is Fitted with VSAT? More than 75% (45%) Between 50% 75% (0%) Under 10% (15%) Between 10% and 25% (30%) Between 25% & 50% (10%) The survey of existing user fleets demonstrates that VSAT will only be fitted extensively on specialised fleets (supply, survey etc.). In these sectors VSAT is becoming the defacto choice for connectivity. Elsewhere, VSAT is fitted to vessel types with high data levels that stem from cargo carriage requirements and operating patterns. Although operators have no immediate need to fit to the remaining vessels in the fleet this may happen over a period of time as VSAT becomes more widespread. P OTENTIAL VSAT USERS The survey results allowed us to develop a detailed prediction of the potential for VSAT in the maritime market over the next 36 months. 27% of the companies interviewed with an average fleet size of just under 100 vessels said that they were currently considering fitting VSAT. Therefore it is possible to size the market opportunity for VSAT in the commercial shipping sector. The commercial shipping market of vessels over 1,000GT likely to have a requirement for VSAT is estimated to be 40,500 vessels. This estimate is extrapolated from Clarksons world fleet statistics. According to the recent Comsys Maritime VSAT report ii the number of maritime VSAT fittings is estimated to be approximately 9,000. This gives a market opportunity of 31,500 vessels. Given that 27% of non VSAT users indicated that they were considering trialling VSAT it can be assumed that fleets representing 8,500 vessels will trial VSAT. Commercial Fleet 40,470 Vessels Fitted with VSAT 9,000 Market Opportunity 31,470 Currently considering fitting VSAT 8,497 70% of respondents indicated that their company would be looking to trial VSAT within the next 12 months (5,950 vessels) and 90% (7,650) are considering trialling with 24 months. This demonstrates, as has been predicted elsewhere, that a considerable interest and demand for VSAT within the maritime market exists, and will remain for the next 24 months. If this interest converted into fittings VSAT market penetration levels would increase to over 40% in 2 years. A level of interest that demonstrates there is a positive short term opportunity for VSAT in the commercial shipping sector months (10%) How soon do you expect to trial / fit VSAT? months (10%) months (20%) 3 6 months (20%) Less than 3 months (40%) As the maritime VSAT market continues to mature market growth will come from an uplift in fittings within existing users as they increase their level of fittings, and from fleets fitting VSAT for the first time. Tier 2 operators entering the market will drive and provide the majority of demand for VSAT ensuring buoyant market conditions for at least the short to medium term. 4

6 DRIVERS AND BARRIERS TO EVALUATION AND FITTING The key drivers for potential VSAT users were discovered to be the same as those for existing VSAT users, namely; be problematic with non VSAT equipped vessels, leading to the conclusion that demand for these applications within the shipping industry will drive fittings of VSAT. Most popular applications currently being implemented Improvements to operational efficiency Improved business processes 35% 30% 25% Key Internal Drivers for VSAT GSM Network Sharepoint/ Citrix Training Engine Condition Monitoring ERP Video Conferenceing Weather Remote IT Regulatory Data ECDIS Updates 20% 15% Existing VSAT Users Non VSAT Users As shipping companies modernise and turn to enterprise software applications, designed to improve operational efficiency and business processes, demand for bandwidth has increased and in turn become one of the most important drivers for VSAT. There are an increasing number of applications being utilised by VSAT equipped vessels which would be inefficient or cost-prohibitive via L-Band solutions. The most popular of these applications: 10% 5% 0% Cost Crew welfare Potential Users Op flexibility Improved processes Existing Users New build File and data sharing primarily with Enterprise Resource Planning type applications Remote IT support - vessel IT management by shore based staff Citrix Collaboration and virtualisation GSM Networks using VSAT as satellite backhaul Video Conferencing The survey also asked both sets of respondents what applications they were currently involved in implementing. The results show both groups were looking to implement Enterprise Resource Planning (ERP), Video Conferencing and weather routing/data provision applications. Implementation of such applications would Similarly, although non-vsat users were anticipating using L-Band services for remote IT support, it is likely that remote IT support will be responsible for driving VSAT demand. This is because, despite specialist software, L-Band services limit the use of this type of application. Crew welfare used to be the primary driver for VSAT, but that trend has now changed. Only 14% of respondents rated crew welfare as the primary reason for considering VSAT. This is due to the near balance of demand and supply for seafarers as reported by BIMCO/ISF iii. Existing VSAT users placed higher importance on this as a driver to fit VSAT, and it is still relevant in specific sectors of the maritime industry where qualified crew are in high demand. Companies not considering VSAT listed three reasons for not choosing to implement VSAT: cost, coverage and insufficient data requirements. Cost was the main reason not to fit VSAT and companies that indicated this as a reason were comparing VSAT costs against those of L- band services. However 20% of respondents believed that they would actually save money by installing VSAT. These companies perceived that fitting VSAT would allow them to take advantage of applications not suited to L-band services and create cross-business benefits and efficiencies which were simply not reflected in the communications budget. 5

7 Reasons for not fitting VSAT Satisfied with existing provider/ solution 12% Insufficient data/voice requirement 22% Company not yet evaluated 5% Coverage 22% Cost 32% VSAT is not routinely fitted to new build vessels. In fact according to respondents less than 10% of new build vessels will be equipped. This is likely due to vessel specifications having been agreed prior to the increase in interest for VSAT, and the consequent specification of Inmarsat Fleet or FleetBroadband as part of a wider GMDSS installation. It is likely that in the years ahead VSAT will be fitted more routinely on new builds. Satellite Communication Systems fitted on Non VSAT Equipped Vessels Complexity 7% 97% 84% 73% The survey asked respondents what they were currently spending on their satellite communications per month per vessel. For non-vsat users the figure ranged from a low $300-$400 USD per month to over $2,000 USD per month. The average was $1,051 USD. Those respondents who cited cost as the biggest barrier to fitting believed that VSAT was going to significantly increase their monthly vessel spend and that this additional cost could not be justified internally. This belief was based on an analysis purely of comparative communications spend and not of the impact across the business as a whole. 51% 32% 8% Coverage was also perceived as a barrier because VSAT could not be relied on to be constantly available. Therefore ship operators had to make operational contingencies and switch to alternative systems when VSAT was not available. Many companies, especially those with lower monthly satcom expenditure, felt they had insufficient data requirements to warrant fitting VSAT. The majority had a wide spread of applications on board the vessel but were tightly controlling expenditure by limiting the amount of data transferred by these applications. When investigating the type of satellite communications system that was utilised in the fleets not considering VSAT it became clear that Inmarsat FleetBroadband was seen by many as the equivalent of a VSAT fitting. This perception is probably based on VSAT operators now offering new services with low data rates at ever lower price points. Even though FleetBroadband is a pay per usage service, the capabilities were perceived to be similar. It could therefore be argued that some vessels fitted with FleetBroadband should be removed from the market opportunity for VSAT. Greater operational efficiency within shipping companies has become a key goal and this drive has led to VSAT being viewed by both potential and existing users as a key tool in its accomplishment. Existing users view VSAT as essential for their onboard applications and both groups view it as important for their future application deployment. Cost, coverage and insufficient data requirements are still key factors for those not considering fitting VSAT. However, lower price, lower data rate VSAT services are drawing negative comparisons from some ship operators to FleetBroadband. Although VSAT is not being routinely fitted on new builds today that is likely to change as the market matures. COMPARATIVE EXPENDITURE One of the most interesting facets of the VSAT survey has been how the commercial maritime market perceives and quantifies cost and return on investment (ROI) within their businesses. 6

8 On the surface the survey produces conflicting results. The average monthly communications spend on VSAT is $3,500 USD, considerably higher than L-band services. Yet, of the companies using VSAT, 20% of users believed that they had saved money moving to VSAT, whilst 60% claimed that they had seen their communications cost double with VSAT. What lies at the heart of this is the potential of VSAT to drive efficiency and operational savings across business units other than just the IT/Communications department. Those existing VSAT users that had quantified their savings had done so by measuring savings/costs to the IT department but not elsewhere within the business. The comparison was then made only of the cost of VSAT as compared to the cost of their L-band service and the reduction in the number of IT related vessel visits. No vessel operator had included in the comparison savings made elsewhere in the business resulting from the introduction of VSAT and the applications they now had access to. It is clear that non-vsat users are adopting a similar approach. Many respondents thought that senior management would not approve purchase of VSAT solutions because they could not be provided with a business case that would demonstrate a return on investment. It is evident that IT/Technical and Fleet managers currently lack the methodology to fully evaluate the impact of VSAT on the business as a whole. This is in marked contrast to those respondents who were at the C-Suite /senior management level who approached their CEOs/boards with business cases based on efficiencies that could be realised elsewhere within their business from the introduction of a VSAT backbone. These respondents who were able to present such a business case achieved high level buy-in for the adoption of VSAT as a necessary tool with which to achieve the wider main business objective. The significance of this finding to the development and penetration of communications solutions within the commercial maritime market should not be underestimated. It indicates that, if provided with the necessary tools and methodology to accurately evaluate cost savings and efficiencies derived from improved communications, ship operators are prepared to make substantial investments in VSAT technology. It also reinforces the migration of communications away from the operational IT management remit and towards its new position as a core strategic cross-business function which must be driven at the C-suite level. The price differential between VSAT and L-band services is not the barrier it is perceived to be by IT / Fleet management. When the efficiencies gained are viewed holistically across the organisation a business case for VSAT can clearly be found. Unfortunately, at this time, the IT/Fleet management personnel do not have the methodology to evaluate these efficiencies and the C- suite is rarely involved in the process. Until this is remedied ship operators will be unaware of the extent to which VSAT could positively impact their business. PURCHASING BEHAVIOUR & DECISION MAKING C HOICE OF S UPPLIER When questioned about the drivers to their choice of VSAT supplier potential users pointed to coverage as the most powerful, followed by cost, and the technical specification of the system. Coverage was a recurring theme for potential users many of whom believed that current coverage areas, despite being almost global and covering the vast majority of the shipping lanes, would not provide satisfactory reach. For some it was simply a lack of current knowledge about coverage, for others coverage was still inadequate for their requirements. This does not support the general belief of maritime communications suppliers that cost is the pre-eminent consideration when choosing a supplier of maritime communications equipment. It indicates that being able to use the solution anywhere is more important than its cost and functionality. Coverage Network Specification Existing customer Reputation Quality of service Choosing a Supplier Cost 0% 10% 20% 30% 40% Existing Users Potential Users 7

9 Choice of supplier for existing users is about quality of service, coverage and specification. Cost was fourth placed, indicating that VSAT was a requirement for the business providing cross functional efficiencies and savings. Coverage is a significant issue even for existing users showing that although near global coverage is available this still does not fully meet the requirements of the shipping industry. B UYING & E VALUATION V. F INAL PURCHASE DECISION The survey showed that the main drivers for fitting VSAT were to improve business processes and efficiency. The management functions within shipping companies with the oversight to envisage where these business process improvements could be made are likely to be at senior management or board level. However, the survey clearly showed that the buying and evaluation of VSAT systems falls to IT/Technical and Fleet Manager functions which do not carry with them the oversight or seniority to drive such changes through the organisation. Senior management, in the vast majority of cases, are not involved until the final purchase decision is being made. Ship operators clearly lack a holistic, robust approach to quantifying potential VSAT cost savings across their businesses (see Comparative Expenditure). As a result senior management are being regularly presented with a business case by their IT and Fleet Managers that only compares the cost of VSAT against their existing satellite communications service. Unfortunately, as this survey has demonstrated, this is most often a business case with no return on investment. Shipping companies not equipping their staff with a methodology to quantify efficiency savings within the organisation are therefore taking decisions based on what they perceive as solely the requirements of the IT department. Ironically, at the same time spending large sums on the implementation of ERP solutions primarily to drive efficiencies within their business and are in danger of jeopardising these by not having an adequate communications infrastructure in place. solutions to ensure that they engage shipping company Senior Management and Board members from the outset. 60% 50% 40% 30% 20% 10% 0% Purchase Process Buying / Evaluation Final Purchase Decision Despite the fact that VSAT can be three times more expensive than existing L-band services nearly 30% of the market is considering this technology because of the benefits they perceive it can bring to their organisation. For these companies it is about the value that VSAT can deliver rather than its comparative cost. Messages that concentrate on coverage, quality of service and functionality may help VSAT operators differentiate themselves from the competition. In the knowledge that ship operators very often lack the methodology to fully assess the impact of VSAT within the organisation, VSAT suppliers should revisit how they market and sell their 8

10 KEY FINDINGS KNOWLEDGE & UNDERSTANDING Awareness and understanding of the technical and operational proposition of VSAT within the maritime market is better than expected and complexity does not appear to be a barrier to adoption. Detailed knowledge of VSAT technology is still limited and the ability to measure the value-proposition impact of the technology on business process and operational efficiencies is still in its infancy. M ARITIME VSAT MARKET & ITS POTENTIAL Considerable interest and demand for VSAT within the maritime market exists and will remain for the next 24 months. 27% of the market is considering trialling VSAT which equates to fleets representing 8,500 vessels. Of the 8,500 vessels currently considering VSAT 70% would be looking to trial within 12 months, which represents 5,950 vessels. 90% are considering trialling with 24 months, which represents 7,650 vessels. A penetration level of 24% is representative of what the industry should expect to see in mixed fleets, and mixed fleets within Tier 2 operators. D RIVERS & B ARRIERS TO E VALUATING AND F ITTING The key drivers pushing ship operators to consider VSAT are improvements to operational efficiency and improved business processes. Those applications that will drive demand for VSAT are Enterprise Resource Planning (ERP), video conferencing, weather routing / data provision and remote IT solutions Current applications being implemented by both sets of respondents and which will drive demand for VSAT are: ERP; video conferencing; remote IT; and regulatory data / ECDIS updates. Crew welfare is not the driver it once was towards VSAT fitting. This is explained by the fact that supply and demand are now in balance in the seafarer market. The main barriers to fitting VSAT are perceived to be cost, coverage and insufficient data requirements to justify VSAT. C OMPARATIVE E XPENDITURE 20% of existing users believed that they had saved money moving to VSAT, whilst 60% claimed that they had seen their communications cost double with VSAT. Operators had not quantified savings made elsewhere in the business realised from the introduction of VSAT, and the applications that they now had access to. IT/Technical and Fleet departments currently lack the methodology to fully evaluate the impact of VSAT on the business as a whole. If provided with these tools and methodology more ship operator senior management may be prepared to make investments in VSAT technology. P URCHASING BEHAVIOUR AND D ECISION M AKING Potential users pointed to coverage, cost and specification as the most important factors in choice of supplier whilst with existing users it was quality of service, coverage and technical specification Coverage is a key consideration for both groups. By not equipping their staff with a methodology to quantify efficiency savings within the organisation senior management are taking decisions based on what they perceive as solely the requirements of the IT department. Thus, they are in danger of jeopardising other initiatives by not having an adequate infrastructure in place. Despite the increased expense of VSAT nearly 30% of the market is considering this technology because of the value that VSAT can deliver rather than its comparative cost. CONCLUSION Demand for VSAT services in the commercial maritime sector has increased significantly in the last 5 years and this survey shows that that trend will continue with nearly 30% of the available market considering VSAT within the next 24 months. Much of this demand is driven by ship operators seeking operational efficiency and improved business processes through the implementation of enterprise software applications. However, the rate of adoption of VSAT technology is being limited by coverage, cost and the inability of the industry to identify the true value of VSAT for ship operators. Growth of enterprise applications will force ship operators to look at their communications as a strategic business investment and they would do well to understand and quantify the holistic benefits of such an investment. Education of the market by VSAT operators is key to setting realistic expectations within shipping companies and provides an opportunity for these operators to demonstrate the true value of their VSAT proposition. 9

11 ABOUT STARK MOORE MACMILLAN & IDIRECT ABOUT S TARK MOORE M ACMILLAN Stark Moore Macmillan is a global strategic marketing and communications agency specializing in the commercial maritime sector. They provide a range of services from market assessment, research and opportunity analysis to corporate, product and brand positioning strategies, digital and social media communications programmes and traditional PR, for companies with an existing presence in the maritime industry and those seeking to enter the market Stark Moore Macmillan s maritime marketing team includes former CEOs, Marketing Directors and Brand Directors of some of the most well-known names in maritime. Appreciating that the maritime market is truly global in nature, the maritime marketing team provide a correspondingly structured service to their clients. Their collective experience, together with market research and ongoing dialogue with the maritime market, inform the agency s recommendations and the programmes they develop for their clients. The agency has become a trusted partner to maritime organizations which value its strategic insight, creativity and clear commercial focus. ABOUT IDIRECT As maritime communications has shifted from basic connectivity for emergency services to being an integral part of business operations, so too has the communications technology that provides the backbone of these networks. No longer is basic satellite connectivity, with low data speeds and pay per usage tariffs acceptable to meet the business needs of a modern maritime vessel. High-speed, always-on VSAT connectivity has expanded the communication capabilities on board and changed the way maritime companies operate their vessels. idirect has fueled this change through their core platform of hardware, software and advanced features that enable their network of satellite service providers to offer the highest quality connectivity solutions with guaranteed service level agreements to the maritime market. 12 of the top 15 VSAT service providers rely on idirect technology as a part of their service offering. idirect continuously innovates and sets the standard for satellite communication solutions at sea. As a manufacturer of communications technology the company is in the unique position of being able to develop strong working relationships with both the service providers and the end customers. This enables idirect to develop the technology that service providers require, while understanding the application needs of the end customer. idirect is committed to the maritime market and its continued adoption of broadband VSAT technology. i Comsys 2 nd Maritime VSAT report ii Comsys 2 nd Maritime VSAT report iii BIMCO / ISF Manpower 2010 Update The worldwide demand and supply of Seafarers 10

12 VSAT: Present and Future A comprehensive survey of maritime VSAT For further information contact: Roger Adamson Director, Maritime Business Stark Moore Macmillan 20 Hanover Square London W1S 1JY UK T: +44 (0) E: [email protected] Terry Neumann Director, Corporate Marketing idirect Sunrise Valley Drive Suite 100 Herndon, VA US T: E: [email protected] STARK MOORE MACMILLAN S m Stark Moore Macmillan 2011